What Is the Tax Threshold in South Africa
Yes. All income from employment including bonuses, 13th cheques, and commissions counts towards your total taxable income and the tax threshold.
2026 Tax Thresholds by Age
Under 65 years: R95,750 per year. 65 to 74 years: R132,150 per year. 75 years and older: R147,700 per year. These apply to your total taxable income before deductions.
What Counts Towards the Threshold
Your total taxable income includes salary and wages, bonuses and commissions, rental income, interest above the exemption, and foreign income. It does NOT include tax-free income like interest below the exemption threshold.
Do I Need to File If Below the Threshold
Generally no. If your income is below the threshold and you have no other reason to file, you typically do not need to submit a return. However, you MUST file if SARS sends you a notification, you want to claim a refund, you earned non-salary income, or you want to carry forward capital losses.
Frequently Asked Questions
Does the threshold include my bonus?
Yes. All income from employment including bonuses, 13th cheques, and commissions counts towards your total taxable income and the tax threshold.
If I earn just above the threshold, how much tax do I pay?
You only pay tax on the amount ABOVE the threshold. For example, if you earn R100,000 and are under 65, you only pay tax on R4,250 at the lowest rate of 18%.
Does pension income count towards the threshold?
Yes. Pension and annuity income is taxable and counts towards the threshold. However, retirees aged 65 and older have higher thresholds.
What is the interest exemption?
The interest exemption is R23,800 for under 65 and R34,500 for 65+. Interest below these amounts is tax-free and does not count towards the threshold.
Can I get a refund if I am below the threshold?
Yes. If you had PAYE deducted from your salary but your total income is below the threshold, you can file to claim back the tax that was deducted.
Need Help With Your Tax?
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